5.3.3 Approaches to benchmarking

The results from benchmarking cannot be implemented immediately. The establishment of an innovative business or services, or the improvement of existing ones can be viewed as a continuing process improvement rather than a fixed fact. By focusing on the "gap" between where your company is and where it needs to be, priorities are set for making improvements:

The process is shown visually in Figure 2: Improving product

 

The process, shown in Figure 2 is based on a direct comparison between your company and it's strongest competitor. The “profile” of strengths and weaknesses in the company, compared with the best competitor is schematically represented with the following table:

Table 1 Profile of strengths and weakness of the company

How do we read this Table?

  • Looking at the right side of the thick line, the indication is that our company is in a better situation than the competitor company
  • Looking at the left side of the thick line, the indication is that our company is in a worse situation than the competitor company

The actual definition of the profile can be done using a methodology similar to brainstorming. For more details, please read Module 4.2. Brainstorming

Please take a few minutes to answer the following questions. Possible answers are given below:

  • Which are your competitor’s strengths?
  • How are you going to keep your market share?
  • How can you attract more clients?
    a) With a better design
    b) Achieving greater reliability?
    c) Keeping lower prices?